PROBLEM 10.2 Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formules, where is the number of laber-hours worked in a month: Cost Formulas Direct labor Indirect labor Uulitles Supplies Equipment depreciation. Factory rent.. Property taxes. Factory administration $15.800 $8,200 + $1.609 $6,400 + $0.809 $1,100 + $0.400 $23,000+ $3.709 $8.400 $2.100 $11.700+ $1.900 The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred In March Direct labor Indirect labor Utilities Supplies Equipment depreciation.. Factory rent.... Property taxes... Factory administration $134.730 $19.860 $14,570 $4,980 $54,080 $8,700 $2,100 $26.470 Required: 1. The company had budgeted for an activity level of 8,000 labor-hours in March. Prepare the Production Department's planning budget for the month. 2. The company actually worked 8,400 labor-hours in March. Prepare the Production Department's flexible budget for the month. 3. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances. 4. What aspects of the flexible budget performance report should be brought to management's attention? Explain. Note: You need to follow the same format provided in the PowerPoint slides of the chapter